Canon 2003 Annual Report Download - page 41

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39
RESEARCH AND DEVELOPMENT, PATENTS AND
LICENSES
Canon is now in Phase II of its Excellent Global Corporation Plan,
which started in 2001 and will end in 2005. The management
plan aims to guide Canon to the No.1 position worldwide in all
core business areas, to build on its R&D capabilities and to
continually create new businesses and to further strengthen its
financial position.
With respect to its R&D goals, Canon formulated as part of its
management plan the “Canon Over IP” concept, through which
Canon intends to connect its digital products to the Internet and
lay the foundations for Internet-businesses for the future. The
Company envisions Canon products and systems interconnected
over networks, as well as a variety of Web services that expand its
business domains while creating new value for customers.
Canon has R&D centers worldwide that closely collaborate in
their R&D activities. Some regional R&D centers conduct basic
research into technology, and others apply their expertise to
develop new products and businesses.
In October 2003, the Company formed a new organization for
its R&D activities, Leading-Edge Technology Development
Headquarters, from the former Canon Research Center and other
R&D divisions. Leading-Edge Technology Development
Headquarters aims to create new products for the development
of new business areas.
In addition to Leading-Edge Technology Headquarters, the
Company’s R&D activities are conducted in the following six
organizations:
• Core Technology Development Headquarters (where
component engineering and base technology R&D, such as
material engineering, nanotechnology and production
engineering, is conducted)
• Platform Technology Development Headquarters (where
platform technology R&D, such as system Large Scale
Integration (LSI) chips and network technology, is
conducted)
• Device Technology Development Headquarters (where key
device R&D, such as for semiconductor devices, is
conducted)
• SED Development Headquarters (where Surface-conduction
Electron-emitter Display R&D is conducted)
• Ecology Research Center (where solar cell R&D is
conducted)
• Advanced Materials Research Center (where advanced
materials R&D is conducted)
Canon had R&D expenditures of ¥259,140 million
(U.S.$2,422 million) in fiscal 2003, ¥233,669 million in fiscal
2002 and ¥218,616 million in fiscal 2001. The ratio of R&D
expenditure to total net sales for the past three years was 8.1%,
7.9% and 7.5%, respectively.
Canon seeks to produce new products that are protected by
patents and to set market product standards in order to enhance
its market position. The United States Patent and Trademark
Office (USPTO) announced that Canon obtained the second-
greatest number of private sector patents in 2003. This
achievement marks Canon’s twelfth consecutive year as one of
the top three patent-receiving private-sector organizations.
Canon aims to realize production procedures that
dramatically reduce the need for prototypes in the design
process, through the effective utilization of 3D-CAD systems, in
order to accelerate product development and curtail costs.
99 00 01 02 03
R&D expenditure
(Millions of yen)
300,000
0
177,922
194,552
218,616
233,669
259,140